Foreigners took $420m out of the stock market in six months

[Champion_Usmani]

Foreigners sold shares worth $420 million during July to December 2018, according to the data released by the State Bank of Pakistan on Wednesday.

As foreigners were taking their dollars out of the country’s capital market, the benchmark KSE-100 index was on a decline and lost 5% of its value in the period under review.

The overall picture is no good as foreign investment in the country has declined by 77% to $900 million in the last six months over the comparable period of the previous year. In December-July 2017, Pakistan received $4 billion in foreign investment.

The dollar drain from the capital market and declining foreign investment coupled with little to no growth in exports has put the country’s foreign exchange reserves under pressure.

For every dollar that makes its way to the country, two leave it resulting in our dollar reserves to deplete. Currently, Pakistan has only $7 billion left in its kitty, which is not enough to sustain even two months of imports, let alone repayment of foreign loans.

Related: Pakistan doesn’t have enough dollars this year: Moody’s

The PTI government has been trying to get help from friendly countries and is also negotiating with the International Monetary Fund to shore up its foreign reserves.

So far, the government has secured an aid package from Saudi Arabia, which pledged $3 billion in cash and another $3 billion in oil credit while UAE has also pledged $3 billion to support our foreign-exchange reserves.

According to a report by Moody’s investors service, Pakistan has 60% fewer dollars than it needs to meet its external financing need for 2019. If we don’t increase our dollar reserves, the rupee will remain under pressure and may depreciate even further, which may lead to higher inflation.

Last year, the dollar rose 27% against the rupee and was trading at Rs139 at the end of the year.

https://www.samaa.tv/news/2019/01/foreigners-take-420m-out-of-the-stock-market-in-six-months/

@Maarkhoor @Lucky Breeze @Yaseen1 @Jinn Baba @SmartGeek @Tameem @BATMAN @Proudpakistaniguy @Major Sam @volatile @CIS-TRANS @Canuck786 @Umair Nawaz

https://twitter.com/i/web/status/1085735933830447104

 

[Champion_Usmani]

FDI Falls 77.2 Percent To US $ 899.5m:State Bank Of Pakistan

Pakistan's Foreign Direct Investment (FDI) during first half of current fiscal year, fell by 77.2 percent to US $899.5 million as compared to same period of last year

ISLAMABAD, (UrduPoint / Pakistan Point News - 16th Jan, 2019 ) akistan's Foreign Direct Investment (FDI) during first half of current fiscal year, fell by 77.2 percent to US $899.5 million as compared to same period of last year.

The net FDI during same period of the yer 2017-18 was recorded at US $3,950 million, according to data released by State Bank of Pakistan (PBS) on Wednesday. On year to year basis, the FDI also plunged to $230 million in December 2018 against FDI of $2,740 million in samemonth of the preceding year.

According to details, the net FDI from United States fell from $407.

5 million in July-December (2017-18) to negative $196.2 million during same period of current fiscal year.

Similarly from China, the net FDI also fell from $1,107.4 million in the corresponding period of 2017-18 to $754.2 million in the same period of current year.

The net FDI from Netherlands increased from $46.9 million to $53.5 million whereas from United Arab Emirates, it increased to $45.7 million from $5.8 million.

Likewise, the investment from Turkey also rose to $33.1 million in July-December (2018-19) from$8.8 million in same period of previous year.

https://www.urdupoint.com/en/business/fdi-falls-772-percent-to-us-8995mstate-b-531413.html

Foreign direct investment falls 77.2pc to $899.5m

ISLAMABAD: Pakistan’s Foreign Direct Investment (FDI) during the first half of current fiscal year (2018-19), fell by 77.2pc to $899.5 million as compared to $3,950 million in the same period last year (2017-18), according to the data released by State Bank of Pakistan on Wednesday.

On a year-to-year basis, the FDI also plunged to $230 million in December 2018, against FDI of $2,740 million in the same month of the preceding year.

According to details, the net FDI from the United States fell from $407.5 million in July-December 2017-18 to negative $196.2 million in the same period of the current fiscal year.

Similarly, the net FDI from China also fell from $1,107.4 million in the corresponding period of 2017-18 to $754.2 million in the same period of the current fiscal.

The net FDI from the Netherlands increased from $46.9 million to $53.5 million whereas, from the United Arab Emirates, it increased to $45.7 million from $5.8 million.

Likewise, the investment from Turkey also rose to $33.1 million in July-December 2018-19 from $8.8 million in the same period of the previous year.

https://profit.pakistantoday.com.pk/2019/01/16/foreign-direct-investment-falls-77-2pc-to-899-5m/

 

[Yaseen1]

when govt policy changes every month then this is likely to happen economic policy should be consistent to ensure investor trust and judiciary should not overly involve in govt matters for point scoring

 

[Champion_Usmani]

https://twitter.com/i/web/status/1085543325145448452

https://twitter.com/i/web/status/1085634930925846533

https://twitter.com/i/web/status/1085259274169786369

Cartoonist Sabir Nazar’s take on the government’s promise to bring back the $200 billion it says has been funnelled abroad through money laundering and other illegal means.

 

[Baby Leone]

when Judiciary becomes police and govt trying every best to call every investor as corrupt and belongs PML N or PPP this happens. where govt itself have no vision to run economy its being 6 months they are in power but still acting as if they are in opposition with no will to correct things just blame blame or blame with no clear economic policy just calling everyone else chor and daku.

 

[Champion_Usmani]

آئی ایم ایف کیساتھ تاخیربرتنے سے حالات مزیدمشکل ہورہے ہیں:ماہر معیشت حفیظ پاش

اسلام آباد (ڈیلی پاکستان آن لائن) سابق سیکرٹری خزانہ و ماہر معیشت حفیظ پاشانے کہاہے کہ آئی ایم ایف کیساتھ تاخیربرتنے سے حالات مزیدمشکل ہورہے ہیں، حکومت کے متضاد بیانات سے مارکیٹ میں غیریقینی پھیلی ہے ۔

دنیانیوز کے پروگرام ”دنیاکامران خان کے ساتھ“ میں گفتگو کرتے ہوئے حفیظ پاشا نے کہاہے کہ دوست ممالک سے جوقرضہ ملا اس سے ہمیں کچھ وقت ملا ہے، امپورٹ ایکسپورٹ کافرق آپ کوترجیحی بنیادپرکم کرناہوگا، تجارتی خسار ے میں پہلے 6 ماہ میں کوئی خاص کامیابی نہیں ملی۔انہوں نے کہا کہ قرضہ جات ہمیں زیادہ سے زیادہ 4 سے 5 ماہ سپورٹ دیں گے، آئی ایم ایف نہ جانے سے مشکل ایڈجسٹمنٹ کرناپڑےگی۔

ان کا کہنا تھا کہ حکومت کے متضادبیانات سے مارکیٹ میں غیریقینی پھیلی ہے،آئی ایم ایف کیساتھ تاخیربرتنے سے حالات مزیدمشکل ہورہے ہیں۔

https://dailypakistan.com.pk/17-Jan-2019/912194

when govt policy changes every month then this is likely to happen economic policy should be consistent to ensure investor trust and judiciary should not overly involve in govt matters for point scoring

Bro, do govt, even possesses any policy?, economic policy i mean..

What is the policy regarding crashing stock market? rising inflation? Debt servicing? current account Deficit? Industrial revolution?, new IMF program?

I mean there is nothing, as called a policy right now. All what govt. is doing, is printing money day and night & imposing new taxes upon nation via announced and un announced mini budgets. thats it.

https://twitter.com/i/web/status/1084647122396426240

 

[Rashid Mahmood]

 

[Champion_Usmani]

Divided house: Asad Umar faces party pressure ahead of mini-budget

According to sources, Pakistan Tehreek-e-Insaf (PTI) leader Jahangir Tareen’s desire to undermine the finance minister has further complicated the economic decision-making.

Because of this, Prime Minister Imran Khan is getting conflicting advice, undermining prudent and smooth decision-making at a difficult economic juncture, the highly placed sources told The Express Tribune.

Tareen, with the help of likeminded people, tried to corner Umar during two recent meetings presided over by the prime minister, claimed the sources.

These two sessions were also attended by current and former officials of the International Monetary Fund (IMF) of Pakistani origin and close friends of Prime Minister Imran. The overall atmosphere of these meetings remained tense, according to one insider.

Masood Ahmed, former director for Central Asia and the Middle East of the IMF, Reza Baqir, who is IMF’s Resident Representative in Egypt, Abraaj Group founder Arif Naqvi, and Samba Bank Chairman Shujaat Nadeem, were among the participants.

The meetings had been held with a view to review and formulate the economic policies during the PTI government’s tenure, particularly the future line of action in its relations with the IMF.

Jahangir Tareen and Masood Ahmed did not respond to the queries sent by The Express Tribune.

The sources said that Tareen was not happy with the management of the economy and he wanted the government to change the course.

The sources said Tareen also wanted to get his favourites appointed at key posts in the economic affairs ministries. They said he was backing the chairman of the Federal Board of Revenue (FBR) and wanted a new governor of the State Bank of Pakistan of his choice. Tareen also had issues with Umar’s subsidies policies, they said.

https://tribune.com.pk/story/188716...-umar-faces-party-pressure-ahead-mini-budget/

 

[Rashid Mahmood]

THE EXPRESS TRIBUNE > BUSINESS
Foreign direct investment in Pakistan hits six-month high
By Salman Siddiqui
Published: January 17, 2019
FDI increases 17% to $319.2m in December 2018.

KARACHI: Pakistan achieved a six-month high foreign investment in different productive sectors of the economy in December 2018 after the country finished a year-long exercise of letting the rupee depreciate against the US dollar to create an equilibrium.

Foreign direct investment (FDI) increased 17% to $319.2 million in December 2018 compared to $272.8 million in the same month last year, the State Bank of Pakistan (SBP) reported on Wednesday.

This is also for the second consecutive month that the FDI has continued to surge on a month-on-month basis.

“The pending rupee devaluation was one of the biggest concerns of foreign direct investors. Now when Pakistan has addressed the concern, it has regained foreign investors’ trust on the country,” Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General M Abdul Aleem told The Express Tribune.

Despite heavy inflow from China, FDI fails to pick up in FY18

The SBP has devalued the rupee by a whopping 32% in the last 13 months to Rs138.90 to the US dollar on Wednesday.

Besides, the political uncertainty linked to the July 2018 general elections has come to an end and investors have gradually built trust on the recently installed government in the country as well, he added.

In the recent months, the foreigners squeezed investment in wait for clarity on economic policies of the new government. “The government has taken tough decisions over rupee devaluation and (key) interest rate hike. The initiatives have apparently won the investors’ confidence,” he said.

Unlink the previous five months when China remained the only healthy foreign investor in Pakistan, Netherlands and Norway also appeared as significant foreign direct investors in December 2018, according to SBP.

China alone has invested net FDI worth $120.6 million in December, while Norway and Netherlands have appeared as the second and third largest investor with $65.2 million and $47.6 million, respectively.

Sector-wise, it was financial business which attracted the single highest investment worth $137.3 million in the month. This was followed by chemicals with $50.9 million and construction $45.1 million.

Cumulatively in the first six months (July-December) of the current fiscal year, FDIs have dropped 19% to $1.31 billion compared to $1.63 billion in the same period last year.

“The investment attracted in the six months is not bad keeping in view the then political uncertainty and investors waited for clarity on the government economic policies,” Aleem said.

“However, the much-awaited jump in FDIs is yet to come,” he said.

Clarity and confidence on the new government are gradually increasing. “The full-year FDIs should be much higher than $2.8 billion achieved in the previous fiscal year (ended June 30, 2018),” he said.

“The country may attract more foreign investment in oil and gas exploration, telecom, consumer goods, and CPEC-related new investment,” said the official, adding that CPEC-related investments had slowed down over the last seven-eight months.

The total foreign investment, including portfolio investment and public and private external debt, has dropped by a whopping 77% to $899.5 million in the six months compared to $3.95 billion in the same period last year.

The massive drop is seen due to adjustment of the debt Pakistan raised through sale of Sukuk and Eurobond worth $2.5 billion November 2017. The government has not raised debt during July-December 2018 period.

Published in The Express Tribune, January 17th, 2019.

 

[Champion_Usmani]

https://twitter.com/i/web/status/1085461779831029760

https://twitter.com/i/web/status/1084468402188677120

https://twitter.com/i/web/status/1085243620666630145

https://twitter.com/i/web/status/1085246159504007168

https://twitter.com/i/web/status/1085211015099441152

https://twitter.com/i/web/status/1085630637929885697

 

[Champion_Usmani]

https://twitter.com/i/web/status/1085812206409863168

https://twitter.com/i/web/status/1085774457669599234

 

[Skull and Bones]

They will regret this in the future, and eventually buy their stakes back at a much higher premium. Not to forget KSE was the best performing stock market not too long ago.

 

[Super Falcon]

Imran and his idiot minister policies will make us beggers

 

[Lucky Breeze]

IK has to take tough decision. Put bara sahab in the matter so no electable try to make forward block or leave party.


Wasey baray saab bhi preshaan hon gy k insy hamara budget bhi pura hoga ya nahi.
Agy submarines or air defense system ki heavy payments bhi aa rahi hain.

 

[Umair Nawaz]

dont post things from Mansoor Ali Khan.....he is known for fake news!